FTC's Power to Probe Finance Deals Extended
In order to rev up sluggish corporate restructuring, the government has decided to extend the Fair Trade Commission (FTC)'s temporary authority to investigate financial transactions beyond its expiration date in February.
The Financial Supervisory Commission (FSC) will also be allowed to conduct probes into corporate transactions.
In an economic ministerial meeting hosted by Finance and Economy Minister Lee Hun-jai yesterday, the government also set a September deadline to iron out sol tions for the Daewoo Corp. and 11 other ailing units of Daewoo Group, including sales of its operations and normalization of business.
Some of them will be handled by the corporate restructuring vehicle or CRV, to which the creditors hand over the ailing companies' non-performing loans and stocks, thereby accelerating the restructuring process with efficiency.
The ministers decided to wrap up by year-end all the ongoing rehabilitation plans of non-Daewoo companies after carefully judging whether they can be revived.
In addition, the public funds for merger and acquisitions will be under tight review, while at the same time the government will set up measures to prevent the M&A funds from being misused by the conglomerates for business expansion.
The merger and acquisitions funds will help the companies push their self-rescue plans voluntarily as well as vitalize the restructuring process, one government official said. …